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INTERNSHIP REPORT

SUBMITTED BY:
TANIA IQBAL
ROLL NO.FA20 MCM 029
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ACKNOWLEDGEMENTS

PRAISE BE TO ALLAH ALMIGHTY THE MOST MERCIFUL, THE

MOST BENEFICIENT.

I would like to take the opportunity to thank & express my deep sense of
gratitude to my mentor Madam Aasia Siraj & Relationship Manager
Burhan Shahid. I am greatly indebted to them for providing their
valuable guidance, constructive suggestions, & supportive attitude.
I would also like to thank Branch Manager for this internship
opportunity. My sincere thanks also to Ms. Asma Parvez (Remittance &
Clearing officer), Tasneem Akhtar (CD officer) & Arslan Sherwani
(TCO).for their valuable contributions in filling the gaps in my
knowledge.
I owe my wholehearted thanks & appreciation to the entire staff of the
branch for their cooperation & assistance during the course of the
internship.
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TABLE OF CONTENTS

CHAPTER 1: EXECUTIVE SUMMARY7

CHAPTER 2: INTRODUCTION

 ISLAMIC TERMINOLOGY8
 WHAT IS ISLAMIC BANKING?10
 ISLAMIC BANKING IN PAKISTAN11
 MEEZAN BANK HISTORY 12
 VISION, MISSION & CORE VALUES 13
 RECENT ACHIEVEMENT 14
 CREDIT RATING 15
 SHAREHOLDING STRUCTURE 16
 BOARD OF DIRECTORS17
 SHARI’AH SUPERVISORY BOARD 17
 BUSINESS SEGMENTS 18
 MODEL BRANCH TEAM 18
 ORGANOGRAM 19

CHAPTER 3: INTERNSHIP EXPERIENCE

 ACCOUNTS OPENING PROCEDURE 20

 DOCUMENTS REQUIRED FOR A/C OPENING 21
 CHEQUEBOOK/ ATM DEBIT CARD ISSUANCE 24
 STOP PAYMENT 24
 CHEQUEBOOK REQUISITION 24
 ATM DEBIT CARD TYPES 24
 CHEQUEBOOK/ ATM DEBIT CARD DESTRUCTION 25
 DORMANT A/C & CNIC EXPIRY 25
 ACCOUNT CLOSING 26
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 RELATIONSHIP TRANSACTION PROFILE 26

 TAIL MANAGEMENT 26
 CASH OPERATIONS27
 CLEARENCE & REMITTANCE
 CLEARING 28
 TYPES OF CLEARING
 INWARD CLEARING 28
 OUTWARD CLEARING 29
 SAME DAY CLEARING30
 OUTWARDS BILLS IFOR COLLECTION 30
 INWARDS BILLS FOR COLLECTION 30
 INTER CITY CLEARING
 REMITTANCES
 PAYORDERS 30
 DEMAND DRAFTS 31
 FOREIGN DEMAND DRAFTS 31
 EASY REMIT 32
 WESTERN UNION 32
 LIABILITY SALES 32
 SERVICE QUALITY 33
 PREMIUM BANKING 34

CHAPTER 4: PRODUCTS

 DEPOSIT ACCOUNTS
 LOCAL CURRENCY ACCOUNTS
 RUPEE CURRENT A/C 37
 RUPEE SAVINGS A/C 37
 MEEZAN BACHAT A/C 38
 LABBAIK SAVING ASAAN A/C 38
 MEEZAN BUSINESS PLUS A/C 39
 KIDS CLUB A/C 39
 TEENS CLUB A/C 40
 KAROBARI MUNAFA A/C 40
 MEEZAN ISLAMIC INSTITUTION DEPOSIT
A/C (MIIDA) 41
 FOREIGN CURRENCY ACCOUNT
 DOLLAR SAVNIGS A/C 41
 EURO SAVNIGS A/C 42
 POUND SAVNIGS A/C 42
 TERM CERTIFICATES
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 CERTIFICATE OF ISLAMIC INVESTMENT (COII) 43

 MEEZAN AMDAN CERTIFICATE (MAC) 43
 MONTHLY MODARBA CERTIFICATE (MMC) 43
 DOLLAR MODARBA CERTIFICATE (DMC) 44
 CONSUMER FINANCE
 EASY HOME 45
 LAPTOP EASE 52
 MEEZAN ROSHNI 54
 MEEZAN KAFALAH 55

CHAPTER 5: FINANCIAL ANALYSIS

 SWOT ANALYSIS 56
 RATIOS 57

CHAPTER 6: CONCLUSION 60

CHAPTER 7: REFERENCES& APPENDIX61

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EXECUTIVE SUMMARY

My internship at Meezan Bank was a great learning experience. It

introduced me to a professional, friendly & ethical environment.
This report is a reflection of my experience gained through my
internship of 12 weeks at Branch of Meezan Bank. In this report I have
talked about Islamic banking terms, Islamic banking in Pakistan, history
of Meezan bank, its recent achievements, and organizational structure. I
have described my learning experiences in different departments of the
branch. I have also given brief detail about the products offered by the
bank and SWOT analysis and Ratios.
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INTRODUCTION

ISLAMIC TERMINOLOGY
DIMINISHING MUSHARKAH

This kind of Musharkah used as a mode of financing where a partner can

redeem his share / share having a put option or call option

IJARA/IJARAH

Lit: letting on lease. Technically, sale of a definite usufruct in exchange

for a definite reward. Commonly used for wages, it also refers to a
contract of land lease at a fixed rent payable in cash. It is contrary to
"Muzarah" when rent is fixed as a certain percentage of the produce of
land. It also refers to a mode of financing adopted by Islamic banks. It is
an arrangement under which an Islamic bank leases equipment, a
building or other facility to a client against an agreed rental. The rent is
so fixed that the bank gets back its original investment plus a profit on it.

ISTISNA

This is a kind of Sale where a commodity is transacted before it comes

into existence. It means: To order a manufacturer to manufacture a
specific commodity for the purchaser. If the manufacturer undertakes to
manufacture the goods for him with material from the manufacturer, the
transaction of Istisna comes into existence. But it is necessary for the
validity of Istisna that the price is fixed with the consent of the parties
and that necessary specification of the commodity (intended to be
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manufactured) is fully settled between them. This kind of Sale also is

used as a mode of financing which also called “Parallel Istisna”

MILK

Ownership; property.

MUDARABA

The term refers to a form of business contract in which one party brings
capital and the other personal effort. The proportionate share in profit is
determined by mutual agreement. But the loss, if any, is borne only by
the owner of the capital, in which case the entrepreneur gets nothing for
his labour. The financier is known as "rab-al-maal" and the entrepreneur
as "mudarib". As a financing technique adopted by Islamic banks, it is a
contract in which all the capital is provided by the Islamic bank while
the business is managed by the other party. The profit is shared in pre-
agreed ratios, and loss, if any, unless caused by negligence or violation
of terms of the contract by the "mudarib" is borne by the Islamic bank.
The bank passes on this loss to the depositors.

MURABAHA

Lit: Sale on profit; Cost plus profit, sale at stated cost price and mark-up,
sale at a specified profit margin. The term is, however, now used to refer
to a sale agreement whereby the seller purchases the goods desired by
the buyer and sells them at an agreed marked-up price, the payment
being settled within an agreed time frame, either in installments or lump
sum. The seller undertakes all the management needed for the purchase
and also bears the risk for the goods until they have been delivered to the
buyer. This has been adopted as a mode of financing by a number of
Islamic banks. As a financing technique, it involves a request by the
client to the bank to purchase a certain item for him. The bank does that
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for a definite profit over the cost which is settled in advance. Some
people have questioned the legality of this financing technique because
of its similarity to Riba or interest.

MUSHARKAH

The term refers to a financing technique adopted by Islamic banks. It is

an agreement under which the Islamic bank provides funds which are
mingled with the funds of the business enterprise and others. All
providers of capital are entitled to participate in the management but not
necessarily required to do so. The profit is distributed among the
partners in pre-determined ratios, while the loss is borne by each partner
in proportion to his contribution.

RIBA

Riba literally means increase, addition, expansion or growth. It is,

however, not every increase, or growth, which has been prohibited by
Islam. In the Shariah, Riba technically refers to the premium that must
be paid without any consideration. According to the jurists of Islam this
definition covers the two types of Riba, namely Riba Al Fadhl and Riba
Al Naseah.

(A) RIBA AL F ADHL

An extension of Riba to trade because while trade is allowed, not

everything is permitted in trade. The prohibition of Riba al Fadhl closes
all back doors to Riba through trade. Unlawful excess in the exchange of
two counter-values where the excess is measurable through weight or
measure. According to some Ahadith (Sayings of the Holy Prophet) if
six things i.e. gold, silver, wheat, barley, dates and salt are exchanged
against themselves, they should be spot and be equal and been specified.
If these conditions are not found, this transaction will become Riba Al
Fadhl.
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(B) RIBA AL' NASIAH

Literally means increase or addition of debt and it refers to the premium

that must be paid by the borrower to the lender along with the principal
amount as a condition for the loan or an extension in its maturity." It is
thus equivalent to interest. the addition of the premium which is paid to
the lender in return for his waiting as a condition for the loan and is
technically the same as interest.

TAKAFUL

Islamic Insurance.A scheme of mutual support that provides insurance to

individuals against hazards of falling into unexpected and dire need.

WAKALAH
Agency.
ISLAMIC BANKING
Islamic banking refers to a system of banking or banking activity that is
consistent with the principles of the Shari'ah (Islamic rulings) and its
practical application through the development of Islamic economics. The
principles which emphasize moral and ethical values in all dealings have
wide universal appeal.
Islamic banking has the same purpose as conventional banking: to make
money for the banking institute by lending out capital. But that is not the
sole purpose either. Adherence to Islamic law and ensuring fair play is
also at the core of Islamic banking. Because Islam forbids simply
lending out money at interest, Islamic rules on transactions (known
as Fiqh al-Muamalat) have been created to prevent it. The basic
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principle of Islamic banking is based on risk-sharing which is a

component of trade rather than risk-transfer which is seen in
conventional banking. Islamic banking introduces concepts such
as profit sharing (Mudarabah), safekeeping (Wadiah), joint
venture (Musharakah), cost plus (Murabaha), and leasing (Ijara).
Demand for Islamic banking services in Pakistan is strong. Since 2002,
the industry has grown at an impressive rate. Promotion and advocacy of
Islamic banking services really took off in 2002, even though Pakistan
has toyed with the idea since 1979. Today, the scope for further
expansion is vast and thus the inert demand potential for Islamic banking
services needs to be tapped into quickly through active education drives
for the population and training of bank staff.
Currently, there is a lack of education and lack of awareness of the
benefits of Islamic banking to society at large. In order to grow, Islamic
banks should educate the customer and have trained staff in Islamic
finance that can influence customer opinions effectively. Fundamentally,
a careful articulation of the value proposition of Islamic finance is
important in attracting more customers. Islamic banking is not just
another way of conducting financial transactions but an institution that
should uphold social objectives and promote Islamic values towards
their staff, clients and the general public. Other factors perceived to be
important include contributing to the social welfare of the community,
promoting sustainable development projects and alleviating poverty.

Islamic banking in Pakistan

In Pakistan, Islamic banking really started in the late 70s. Serious efforts
were undertaken to transform the economy into one that was Islamic.
The efforts of the late 70s laid the foundation for modern Islamic
banking. However, the real growth of Islamic banking kicked off in
Pakistan after 2002. This was the time when the State Bank of Pakistan
changed its approach to the promotion of Islamic banking.
The first full- fledged commercial Islamic bank license was issued in
2002. Before this time, while there were Islamic financial institutions,
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they were not popular. Inadequate information about Islamic banking

products and services were important factors for a lack of growth of
Islamic banking. Today, there are 5 fully fledged Islamic banks and 13
conventional banks with Islamic banking windows. According to State
Bank of Pakistan (SBP), the total AUM of Islamic financial institutions
have reached Rs 837 billion. The total Islamic banking deposits have
reached a total of Rs 706 billion. These deposits now account for 9.7%
of the total deposits of the banking sector in the country. The total size
of net financing and investments has reached 8.1% of the overall
banking industry. In July 2011, the Securities and Exchange
Commission introduced new rules for takaful, designed to boost
competition and lift the sector’s market share. Currently there are 37
general insurance companies, 7 life insurance companies, and 5 takaful
and re-takaful companies operating within Pakistan. The latter
institutions currently have a market share between 2-3%. The new rules
are expected to increase the number of takaful operators as it allows the
entry of conventional players with takaful windows.
The SBP has been actively reforming the Islamic banking industry to
ensure competitiveness on the global market. This is only good for the
growth of Islamic banking industry in Pakistan as without the support of
the central bank Islamic banking industry can’t grow .The central bank
is currently working on a 5 year strategic plan for the Islamic banking
industry.

HISTORY OF MEEZAN BANK

Meezan Bank Limited, a publicly listed company was incorporated on

January 27, 1997 and started its operations as an investment Bank in
August that year. In January 2002 Meezan bank was granted as nations
full-fledged commercial bank licensee as a dedicated Islamic Bank, by
The State Bank of Pakistan. Meezan Bank is the first and largest Islamic
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Bank in Pakistan having a network of over 220 branches in over 60

cities across Pakistan. Meezan Bank offers a complete range of Islamic
banking products and services, including free online banking for all Pak
Rupee account at all its branches. Meezan Bank today a noteworthy
point along with the evaluation of Islamic Banking in Pakistan. Meezan
Bank is catering to an increasingly astute and demanding financial
consumer who is also becoming keenly aware of Islamic Banking.
Meezan Bank bears the critical responsibility of leading the way forward
in establishing dynamic and stabled Islamic Banking System.

Meezan Bank offers valuable products and services to its customers

without any violation oMeezan Bank Limited, a publicly listed company
was incorporated on January 27, 1997 and started its operations as an
investment Bank in August that year. In January 2002 Meezan bank was
granted as nations full-fledged commercial bank licensee as a dedicated
Islamic Bank, by The State Bank of Pakistan. Meezan Bank is the first
and largest Islamic Bank in Pakistan having a network of over 220
branches in over 60 cities across Pakistan. Meezan Bank offers a
complete range of Islamic banking products and services, including free
online banking for all Pak Rupee account at all its branches. Meezan
Bank today a noteworthy point along with the evaluation of Islamic
Banking in Pakistan. Meezan Bank is catering to an increasingly astute
and demanding financial consumer who is also becoming keenly aware
of Islamic Banking. Meezan Bank bears the critical responsibility of
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leading the way forward in establishing dynamic and stabled Islamic

Banking System.

Meezan Bank offers valuable products and services to its customers

without any violation of Shariah principles.

VISION, MISSION AND VALUES

Our Vision

Establish Islamic banking as banking of first choice

to facilitate the implementation of an equitable
economic system, providing a strong foundation for
establishing a fair and just society for mankind.

Our Mission

To be a premier Islamic bank, offering a one-stop

shop for innovativevalue-added products and
services to our customers within the bounds of
Shariah, while optimizing the stakeholders value
through an organizational culture based on learning,
fairness, respect for individual enterprise and
performance.
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Our Service Mission

To develop a committed service culture which

ensures the consistent delivery of our products and
services within the highest quality service
parameters, promoting Islamic values and ensuring
recognition and a quality banking experience to our
customers.

Our Values

Core Values

Shariah-compliance, Integrity, Professionalism, Innovation, Service,

Excellence, Social Responsibility

Staff

Committed, motivated and professionally trained employees who are

empathic to their customers’ needs.
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Brand Personality

A sober and established, strong, empathic, professional person; who is an

extremely loyal and dependable friend and business partner, and is
committed to offering comprehensive value-based Shariah-compliant
financial solutions.

Relationships

Our relationships are long-term. We recognize and value our customers’

needs above all and strive to ensure their fulfillment. All customers are
treated with professionalism and in a friendly manner. It is our endeavor to
ensure that they receive efficient and timely service. The Meezan Bank
experience is a unique one.

ACHIEVEMENTS :
Meezan Bank has been consistently recognized as the Best Islamic bank
in Pakistan by numerous local and international institutions including
1. CFA Society Pakistan
2. Asiamoney Magazine Hong
Kong
3.Islamic Finance News Malaysia
4.Global Finance magazine, New York
5.Asset AAA Hong Kong.
The Bank has also received “Best Research and Development in Islamic
Finance 2019” award by Global Islamic Finance Awards (GIFA),
London.
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Annual Report 2020 Among Top 3 Corporate Annual Reports in

banking industry by ICAP & ICMAP.
Best Islamic Bank of the year 2020 awarded by CFA Pakistan. Meezan
Bank has received this award for the 5 th consecutive year.
Best Islamic bank in Pakistan 2021 by Asia Money, Hong Kong
Asset AAA Awards 2022:

1. Pakistan's Best Islamic Bank

2. Best Islamic Retail Bank

3. Best Islamic Trade Finance Bank &Sukuk House.

4. Best Deal Pakistan, Best Islamic Structured Trade Finance -
Highly Commended, for Siemens Pakistan Engineering Company Rs.
200 million six-year off-balance sheet lease facility
5. Best Deal - Highly Commended, Pakistan for Pakistan Mobile
Communications Rs. 6.9 billion Airtime Sukuk.

CREDIT RATING
Double A rating assigned by JCR – VIS denotes high credit quality,
strong protection factors and modest risk but may vary from time to time
because of economic conditions. Whereas short term rating A-1+
denotes high certainty of timely payments, excellent liquidity factors
supported by good fundamental protection factors and minor risk
factors.
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The following entity rating of the bank has issued on June 26,2013 by
the Bank’s credit rating agency JCR-VIS Credit Rating Company Ltd:

CATEGORY LATEST PREVIOUS

Medium to Long term Entity Rating AA AA-
Short term Entity Rating A-1+ A-1+
Outlook Stable Stable

SHAREHOLDING STRUCTURE
SHAREHOLDERS RS. %
(MILLION)
NOOR FINANCIAL INVESTMENT 4436 49.11
COMPANY KUWAIT
PAKISTAN KUWAIT INVESTMENT 2710 30.00
COMPANY (PVT) LIMITED
ISLAMIC DEVELOPMENT BANK, 842 9.32
JEDDAH
OTHERS 1045 11.57
PAID UP CAPITAL 9033 100
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SHARI’AH SUPERVISORY BOARD

Shariah Strength

Successful implementation of the Islamic Banking model rests upon

absolute adherence to the principles of Islamic Shariah. The foundations
of a strong Shariah underpinning at Meezan Bank were laid from the
beginning. A world-renowned Shariah Supervisory Board and a highly
qualified and experienced in house Shariah Advisor are fundamental
aspects of the Bank's core USP. The primary role of this Board is to
maintain and further strengthen this commitment and to ensure strict
Shariah-compliance in all areas of the Bank's operations.

Members of the Shariah Supervisory Board of Meezan Bank are

Internationally-renowned scholars, serving on the boards of many
Islamic banks operating in different countries.

BUSINESS SEGMENTS
 Consumer Banking
 Corporate Banking
 Investment Banking
 Commercial Banking (including Small and Medium Enterprises)
 Treasury & Financial Institutions
 Asset Management (managed through a subsidiary
 Al Meezan Investment Management Ltd
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ORGANOGRAM
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CHAPTER 3
INTERNSHIP EXPERIENCE

ACCOUNT OPENING PROCEDURE:

The steps of a/c opening procedure are as follows:

1st Step: First of all customers are furnished with the a/c opening form
and guided as to how it should be filled and what documents are
required to be attached with it. Forms of illiterate persons are filled in by
the PBO.

2nd Step: Once all the requirements have been fulfilled and the form
signed, it is accepted by the PBO and marked with a receiving stamp of
that day. After verification, an account number is generated.
3rd step: The Customer Due Diligence (*CDD), quick statement &
NAB/SDN report are generated and attached to the AOF. Then the AOF
and other documents attached are stamped.

Areas on the AOF not filled are stamped with VOID in order to prevent
misuse. A
In case of cutting or overwriting, customer are asked to sign there and a
cutting confirmed stamp is applied.

Letter of Thanks addressed to the customer with his account number is

dispatched to them via TCS. The TCS dispatch slip is attached with the
AOF.
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4th step: After checking the AOF for errors, it is scanned as five separate
documents (4 PDF & one JPG file).
1. Complete AOF
2. Copy of CNIC or NICOP/POC/PASSPORT.
3. Source of Income
4. Specimen Signature Card as a jpg file.
5. Others (includes all other supporting documents)
These files are then attached in the IBM workflow and sent to OM/BM
for approval. If mistakes are found they are sent back to the PBO for
correction.
5th step: Upon approval the Account record is sent to CAO-end. If any
further rectification is needed the record is marked in reassurance & sent
back for correction. If there is no error found the account is approved
and marked as active. Now the customer will be able to do their banking
transactions.
*CUSTOMER DUE DILIGENCE (CDD):The objective of CDD is to
ensure their viability of performing daily transactions in a bank & to
enable the bank to predict with relative certainty the types of
transactions in which a customer is likely to engage. These processes
assist the bank in determining when transactions are potentially
suspicious.. It is used as a part of Know Your Customers (KYC) policies
of the bank in order to prevent fraud, identity theft & money laundering.
CDD improves customer insight. It also improves operational efficiency
by active management of suspicious transactions and by automated
processing of low-risk customers & resource focusing on high risk
customers.
DOCUMENTS REQUIRED FOR A/C OPENING:
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A. INDIVIDUAL/JOINT/SOLE PROPRIETORSHIP A/Cs:

1. Copy of customer’s CNIC/ NIC for Overseas Pakistanis(NICOP)/
Pakistan Origin Card (POC)/ Passport (Foreign National).
2. Customer’s Source of Income
3.
i. Salaried Person: Copy of Service Card Or copy of Payslip (not
older than 3 months)
ii. Self-employed/ Business Person: Letter of Sole Proprietorship
on letter head Or NTN certificate of business Or Letter from
Partnership firm.
iii. Housewives/ Students/ Retired: Valid proof of source of
income of husband/parents/son/daughter or Pension.
iv, For Sole Proprietorship Accounts Only
a. Copy of NTN Certificates for Business or Sole Proprietor.
b. Customer's request to open an Account, declaring him/herself as
sole proprietor on business letterhead as per text below:
“I am a sole Proprietor of the Firm and as such, I am entirely
responsible for all transactions carried out in the name of the Firm
and I am personally liable for any overdraft or other obligations
arising in or in connection with this Account and the Bank is
hereby authorized to debit the Account with charges and expenses
incurred in connection with this Account.”
4. In case of Minor’s A/c
(i). Source of income of the guardian
(ii). Copy of Guardian’s CNIC
(iii). Copy of Minor’s B-Form.
5. Zakat Exemption Affidavit (if Applicable).
6. Third Party Mandate: (If Applicable)
Customer gives attorney power to a person to operate & manage
the account on their behalf.
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7. FACTA FORM: Foreign Account Tax Compliance Act form is

aimed at preventing U.S taxpayers from using offshore accounts to
evade tax. Therefore except for U.S residents, it is a mere law
formality for others.
SPECIAL CONSIDERATIONS:
1. EXPIRED CNICs:
i. CNICs of senior citizens (65 years or above) are not considered
expired as per SBP directive.
ii. Customers whose CNIC is expiring within one month should apply
for renewal of CNIC at NADRA Office and complete formalities, as
below:
(a) Copy of Original NADRA receipt AND Notarized expired CNIC
copy
(b) Customer's undertaking on the Bank's prescribed format
2.ILLITERATE CUSTOMERS: Two recent passport sized
photographs and Customer's right and left thumb impressions on AOF
and SS card in the presence of an authorized Bank officer. Their
accounts are referred to as Photo Accounts.
3. SHAKY/VERNACULAR SIGNATURES: Indemnity on the Bank's
approved format on Rs. 100 stamp paper
4. SIMPLE SIGNATURES (EASILY IMITATED): Two recent
passport sized photographs
5. CUSTOMER'S UNDERTAKING ON THE B ANK'S PRESCRIBED FORMAT
IF :

i. Address Differ on CNIC and AOF

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ii. Signature Differ on CNIC and AOF

6.IN CASE THE ADDRESSES ON THE CUSTOMER'S CNIC AND AOF ARE
DIFFERENT, AND THE CUSTOMER DOES NOT WANT TO PROVIDE
INTRODUCTION (NOT APPLICABLE FOR
SOLE P ROPRIETORSHIP ACCOUNTS):

i.Copy of utility bill (not later than 3 months old)

Or Copy of Tenancy Agreement of residential address
Or Copy of NTN Certificate
7. CNIC DOES NOT CONTAIN PHOTOGRAPH:
i. Photograph duly attested by gazetted officer/Nazim
ii. CNIC copy without photograph duly attested by the same person who
attested the photograph as per Sr. No. (1) above.
iii. A confirmation in writing to the effect that the individual has no
other document bearing the photograph
8. P HOTOCOPY OF DOCUMENTS
i. Wherever the photocopy of documents is being submitted, customers
are required to show their original documents to a Bank's authorized
officer
ii. Photocopies of documents should be signed by customers; this is for
your safety so that your documents are not misused.
B.
PARTNERSHIP/CLUB/SOCIETY/ASSOCIATION/NGO/TRUST
A/Cs:
1. Copy of CNIC’s of all Partners
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2. Copy of NTN certificate

3. Certified copy of Partnership/Trust deed
4. Certificate of Registration
5. Signatures of all partners on Letter of Partnership
6. Certified copy of rules
7. Certified copy of resolution
8. Minutes of meetings
9. Letter Head
10. Copy of by-laws
11. Passports (For non-residents)
C. LIMITED COMPANY A/Cs:

1. CNICs of all Directors

2. Copy of NTN certificate and Form 29.
3. Certificate of Incorporation.
4. Certificate for commencement of business (For PLC only)
5. Memorandum of Association
6. Articles of Association
7. Current list of Directors
8. Copy of Board Resolution
9. Minutes of meetings
10. Letter Head
The signature in SS card is put in by the person mentioned in the board
resolution.
No next of kin required.
CHEQUEBOOK/ ATM DEBIT CARD ISSUANCE:

Chequebook is given to all account holders free of cost by Meezan

Bank.
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After the cheque book is received by the concerned branch, customer

details (name, a/c number, leaf number and serial range, contact number)
are entered into the Cheque book register. Upon A/c activation the
customer is called by a bank representative for collection of their cheque
book. Upon receipt of cheque book from the branch, the customer
produces his/her original CNIC for verification purposes. Then they sign
on the cheque book register & cheque book receipt acknowledgement
slip which is then detached by the banker and posted in the system.
ATM cards are received in a further 2 or 3 days later and the customers
intimated accordingly. Customer details (Name, A/c Number, ATM
PAN number, contact number) are entered into ATM register. Original
CNIC is produced by the customer for verification purpose and signs in
the receipt acknowledged column of the ATM register.
PROCEDURE OF STOP PAYMENT:

For stopping the payment, we take sign of the customer on stop payment
form where in account number with date and amount of cheque is
written. Customers also mention the reason of stop payment then we
mark that cheque as stop payment.
CHEQUEBOOK REQUISITION:
Customers fill the requisition slip already provided in their cheque books
to order a new cheque book of 25, 50 or 100 leaves and submit it to a
PBO in their concerned branch. The requisition order is then sent by the
bank electronic system to the Head Office.
At the end of the day, a cheque book requisition form is printed from the
system, matched with the physical requisition slips, stamped & signed
by the concerned PBO and then filed away.
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ATM DEBIT CARD TYPES:

There are 4 types of ATM cards available.

1. VISA SILVER
2. VISA GOLD
3. MASTERCARD TITANIUM
4. VISA PLATINUM
VISA Silver & Gold are available to general public.
MASTERCARD Titanium is available for those Current & Saving
Account holders with an overall relationship of PKR 500,000 and above
(Including Term deposit) with Meezan Bank.
VISA Platinum Card is only available to Premium customers (customers
with a combined relationship with Meezan bank of PKR 5 million or
more.)

DEBIT CARD TYPE

CHARGES VISA SILVER VISA GOLD MASTERCARD
TITANIUM
Annual Charges 350 +Tax 600 +Tax 1000+ Tax
Replacement 150 +Tax 150 +Tax 150 +Tax
ATM Cash 30,000 50,000 75,000
Withdrawal
Limit
POS Purchase 50,000 100,000 175,000
Limit
ATM Debit Cards may not be used for purchase of HARAM products or
services. Non-compliance may result in termination of services.
 32

CHEQUE BOOK/ATM CARD DESTRUCTION

If the customer fails to collect his cheque book & ATM card in the
stipulated time (usually 30 days from account activation) they are
marked for destruction. A bank representative will then try to contact the
person via their cell number provided to them. If the customer still does
not collect their Cheque Book/ATM card, or are unreachable, then a
Destruction Report is written and sent to OM & BM for approval. After
the approval the cheque book/ATM card are destroyed as per bank
policy. This is done in order to prevent their potential misuse.
BANK STATEMENT RETURN
The customer is usually sent two bank statements in a year (Half-Yearly
& Annual) by the Head Office, But sometime they are returned usually
due address change as a result of shifting, address error/incomplete in
bank records etc.

These statements are then sent to local branches of the account holders,
who try to contact them address correction and receipt of Bank
statement.
DORMANT ACCOUNT & CNIC EXPIRY:
If there is no transaction in an account for 12 months, then the account is
automatically marked as Dormant by the system. The bank sends a letter
to the customer informing them about impending dormancy of their a/c
45 days beforehand.

To activate a dormant account the customer has to personally come at

their concerned branch. They fill a Dormant A/c reactivation form,
giving a reason for dormancy, updating their contact details and
 33

submitting valid copies of their CNICs. They are given a statement of

their account and their application is forwarded for approval.
Customers whose CNICs are going to expire are similarly informed.
They can personally submit copy of their CNICs or send them by TCS to
the branch.
ACCOUNT CLOSING:
When a customer wants to close their account, they are required to fill
an account closure form for Current or Savings accounts, along with the
reason for account closure. They are also required to deposit unused
cheques, ATM card and locker key.

The branch obtains NOC from Consumer Finance & CAD for closure of
the account. After the NOC is received the remaining balance in the
account is settled either by transferring it to another account of the
customer or issuing a pay order in their name.
In case of savings account, settlement of profit payment is made as per
customer instructions.

All fixed deposits relating to the account are encashed. Bank Statement
of last 6 months is dispatched to customer. Account is marked for
closure in the system and Account Closed is stamped on customer’s
AOF and all supporting documents.
RELATIONSHIP TRANSACTION PROFILE (RTP)
RTP contains basic customer personal and transactional information
provided in the AOF. It also contains actual transaction behavior. If a
customer opened their account due to a specialised product or for a
 34

specific reason (e.g Riba free banking). It is also mentioned in the RTP
form in the comments section.
It is a form maintained by the bank for various purposes. One of the
reasons is to maintain a healthy relationship with the customer by
catering to their specific needs. Another is to report to the Head Office
those highly unusual transactions from the customer account which does
not match its profile & the transaction source cannot be confirmed. The
bank is bound to report such transactions to the National Accountability
Bureau (NAB) by law.
TAIL MANAGEMENT:

In Meezan Bank there is no penalty if an account balance falls before

minimum level (Rs. 25000). When an account balance remains below
the minimum level for some time, the bank contacts the customers to
ascertain the reason for that & to encourage them to keep a minimum
level of deposit in their account.

CASH OPERATIONS:

This is very important and sensitive department of a bank because cash

is the most liquid asset. Only authorized personnel are allowed in this
department. When cash is received at the counter, this entry is recorded
in the computer by the cashier. At the close of the day, these entries are
 35

balanced with each other and cash shown in system is balanced with
physical cash.
When the cheque or any negotiable instrument is presented at the
counter for payment, the cashier verifies the signature on the system and
for online transfers ask for the photocopy of CNIC of the person who
has come, instead of actual account holder. The teller records the
transaction in the system and then payment is made to the payee.
The entries made by Tellers are authorized by the CD officer. The
consolidated figure of the receipt and payment of the cash is entered in
the cash balance book (in the system) and drawn closing balance of cash.
Opening Balance + Receipts – Payments = Closing Balance
Utility bills (except water bill) are also accepted at the branch.
Cash Department Equipment includes:
1. Counting Machine: This machine is used to count cash. It is helpful
in counting large sums of money instantly thus reducing service time.
2. Binding Machine: It is used to bind cash into bundles of 100 Notes.
3. Ultraviolet Rays or Note Detector: It is a machine that uses
ultraviolet rays to detect that the note is original or fake.
4. Boards: These are boards supplied by the State Bank of Pakistan to
the bank to display near the Cash Counter. These boards include the
Mohtasib Board and the Cash Boards that describe the features in the
currency notes that are used to check that the currency note is original or
fake.
 36

CLEARING & REMITTANCES

Cle aring It is the process of settling transactions between

banks. This process involves moving negotiable instruments (Cheque,
Pay Order, Demand Draft) from the bank in which it was deposited to
the bank on which it was drawn, and the movement of the money in the
opposite direction. This process is called the clearing cycle and normally
results in a credit to the account at the bank of deposit, and an equivalent
debit to the account at the bank on which it was drawn.
National Institutional Facilitations Technologies (Pvt) Ltd (N.I.F.T) acts
as the “Automated Clearing House” for financial institutions. Its
function is to facilitate the clearing of cheques between institutions
locally. It was established in 1995 by banking giants of Pakistan i.e.
Habib Bank Limited (HBL), National Bank Pakistan (NBP), Allied
Bank Limited (ABL), Muslim Commercial Bank (MCB) . It has the
blessing & support of State Bank Pakistan (SBP) offices in all major
cities of Pakistan.
TYPES OF CLEARING:
There are two types of clearing:
(1) Inward Clearing.
(2) Outward Clearing.

1. INWARD CLEARING: Inward clearing refers to the

cheques drawn by the bank/branch customers on their account
in favor of other parties. On receipt of the inward clearing, the
 37

cheques are posted to the various accounts on which they are

drawn - meaning the accounts of the cheque issuer or drawer
with the bank is debited to the account and the payment is made
to the bank presenting the cheque.
When clearing bag is received from N.I.F.T rider, cheques are counted
against summary report. Cheques & Pay Orders are sorted and
scrutinized.
In case of insufficient balance or any other technical reason cheques are
returned with return memo. This is called Inward Return. Details of
these cheques are noted in the Inward Return register and charges
recovered as per SOC.

The journal of Inward clearing is printed and verified by the designated

officer.

CHEQUE RETURN REASONS:The most common reasons for

cheque return are as follows:
1. Insufficient Funds 2. Cheque is post/stale dated
3. Signature differ of drawer 4. Payment stopped by drawer
5. Clearing stamp required 6. Payee’s endorsement
required
7. Alteration requires drawer’s signature in full.
8. Other technical reason.
2. OUTWARD CLEARING:When a particular branch
receives instruments drawn on the other bank within the clearing zone
and sends those instruments for collection through the
clearing arrangement is considered as Outward Clearing for that
particular branch. This branch is known as collecting branch.
 38

Cheques which were sent in outward clearing returned unpaid, received

by the branch along with the inward clearing are referred to as Outward
Return.
The cheques are scrutinized and clearing stamps are affixed. Details of
the cheque are posted in the system and authorized by the CD officer.
After authorization, cheques and deposit slips are detached and are
separately jotted. This is done in order to ensure that totals of both
cheques & deposit slips match. After jotting is done, cheque are bundled
in lots in a bundle cover provided by N.I.F.T. Voucher cover has
information of
(i) Bank branch name & code (ii) Number of instruments
(iii) Date (iv) Amount of total cheques
This Voucher cover and an “Outward Cheques for Clearing” is then
signed by the Operation Manager.
STAMPING:
(a)For Deposit slips only Clearing stamp is used.
Clearing stamp shows that everything has cleared and bank has
received the payments on behalf of customers.
(b) For cheques, three stamps are used:

(i) “Payee’s a/c credited” stamp on the back of the cheque

(ii) “Clearing” stamp on the back of the cheque.
(iii) “Meezan Bank” stamp on the front of the cheque.

SAME DAY CLEARING:In same day clearing cheques are sent in the
morning through N.I.F.T and payment is received in a similar manner in
the evening.
 39

The conditions for availing same day clearing are:

1. Same day clearing is restricted to instruments valued at Rs.
500,000/- and above and received by 10:00 AM.
2. The depositor must make specific request to the branch for same
day clearing.
3. The same day clearing is restricted to the branches that are
designated only (those within 10 km radius of N.I.F.T), which
ensures that the timings in this respect are strictly followed.
Outward Bills for Collection (OBC): If a cheque is deposited of a
bank whose branch does not fall within the clearing house, then it is
called OBC and it has to be sent to that branch through post/courier and
it will get realised when the bank will honour the cheque. OBCs
instrument must always be endorsed.
Inward Bills for Collection (IBC): The instruments sent to us from the
outstation branches of the banks for collection are called Inward Bills for
Collection (IBC). Such instruments may be drawn on us or on other
branches /banks of the city
INTER-CITY CLEARING: Cheques of another city are called Inter
City Clearing and are dealt under OBC/IBC. It is also done by NIFT .In
inter-city clearing cheque is usually cleared in two or three days.

R E MI T T A N C E S : Remittances are financial flows arising

from the movement or transfers of money
from one place to another within or
outside the city or country. Remittances contribute to economic growth
and to the livelihoods of needy people worldwide. Moreover, remittance
 40

transfers can also promote access to financial services for the sender and
recipient, there-by increasing financial and social inclusion.
Remittance includes:
(1)Pay Orders (2) Demand Drafts (3) Foreign
Demand Draft
(4) Meezan Easy Remit (5) Western Union
1. Pay Order:A pay order is a written order issued by a bank, drawn
upon & payable by itself, to pay a specified sum of money to or to the
order of a specified person. Payment through pay order is a confirmed
payment. It is issued to a customer requesting it only when they have
deposited the same amount in the bank.
Pay order issuance is free of cost but is only issued to its account holders
by Meezan Bank.
Pay order issuance procedure is as follows:
(a) Customer fills the cheque with the amount required for pay
order.
(b) Customer fills the Remittance form (Beneficiary & applicant
details, cheque number, purpose of remittance).
(c) The form along with the cheque is presented to the remittance
officer who verifies the form. The data is entered in already set format of
pay order in computer and pay order print out is taken. An authorized
person and manager operations sign the pay order .The original copy of
the pay order is given to the customer and carbon copy is kept with bank
for office record.
2. DEMAND DRAFT:An order to pay money to the payee who is
residing outside the city. DD can be for a customer who may or may not
 41

have an account in the bank but the other person’s account must be
maintained with the bank for which the payer has demanded the DD.
3. FOREIGN DEMAND DRAFT:Foreign DD is the banker‘s own
draft drawn upon another bank/ correspondent bank in a country other
than the country from where it is issued and drawn and payable in
currency of the country in whose bank/ branch it is drawn.
Correspondent accounts (also called Nostro & Vostro A/Cs) are
accounts established by a banking institution to receive deposits from,
make payments on behalf of, or handle other financial transactions for
another financial institution.
A. NOSTRO ACCOUNT:The term is derived from Latin word for
‘ours’ called “NOSTRA”. It is a bank a/c held in a foreign country
by a domestic bank, denominated in the currency of that country.
A bank counts a NOSTRO a/c with a Debit balance as a “CASH
ASSET” in its balance sheet.
B. VOSTRO ACCOUNT:The term is derived from Latin word for
‘ours’ called “VOSTER”. It is a bank a/c held by the domestic
bank in its home currency for foreign banks.
A VOSTRO a/c with a Credit balance (i.e. a deposit) is a
LIABILITY & VOSTRO a/c with a Debit balance (i.e. a Loan) is
an ASSET.
4. Meezan Easy Remit:Meezan Easy Remit is a Home Remittance
service which provides an easy, fast and reliable way for Pakistanis who
are working abroad to send money to their families and relatives living
in Pakistan. The money sent from abroad can be immediately collected
from any branch of Meezan Bank.
(a) Cash Over-the-Counter Payments (COC): Meezan Easy Remit
allows the beneficiary to receive cash payment of up to Rs. 500,000
 42

from any branch of Meezan Bank without having to open an account at

Meezan Bank.
(b) Direct Credit to Meezan Bank Account (Online Transfer):
Meezan Easy Remit provides instant and real time credit to the
beneficiary's Meezan Bank account at any branch in Pakistan.
(c) Other Banks' Beneficiaries' Payments: Customers of other
banks can get the funds received through Meezan Easy Remit
transferred into their accounts through Real Time Gross Settlement
system (RTGS) on the same day.
5. Western Union Funds Transfer: Money van be transferred
conveniently and in real-time to Pakistan within minutes via the Western
Union Money Transfer Service available at all Meezan Bank branches in
Pakistan. Money may be remitted via any of the Western Union service
providers located in over 200 countries worldwide. This service is
available to all. A person does not need to have a Meezan Bank Account
to avail this service.

LIABLITY SALES

Meezan Bank has an effective outreach programme that uses a team of

skilled Business Development Officers (BDOs). BDO’s have the
responsibility of brining sales to their respective branch by effectively
marketing their products to business owners. In this regard they maintain
a daily Market visit report. They mention the number of sales pitch they
made, hopeful candidates and successful deals conducted.
They are also tasked with visiting the premises of newly opened
business accounts and verifying their businesses. They are usually
 43

accompanied by a PBO. After the visit, a visit report is filed which is

attached to the account opening form of the customer.

SERVICE QUALITY

1. FLOOR TIME MANAGEMENT:FTM is an important part of

Meezan bank’s service quality. Lead Floor Managers maintain and
file daily working sheet of FTM and record customer’s complaints
in the CRM. Daily log of TAT sheet is monitored and put up to
Branch Manager at day end. Complaint handling and its follow up
is made on daily basis. Floor management is done on shift basis so
every member of staff performs it.
2. Lead Floor Manager welcomes all the customers, moves around
the banking hall and cash counter area to ensure that every
customer is looked after properly. Lead Floor Manager’s
responsibilities also include checking of branch cleanliness &
pleasant atmosphere, ensuring availability of stationary &
brochures at proper places as well as maintenance of the notice
board.
3. DAILY TILAWAT & DUA: Daily Tilawat e Quran and Dua is
arranged before opening of branch to public. All staff members
participate in it.
4. WEEKLY SHARI’AH LECTURE:Every week on Friday, after
the Juma Prayers, the Branch Mangers conducts a Shari’ah lectures
to refresh the concepts of Islamic banking among the staff.
 44

5. SERVICE QUALITY CHECK (SQC) VISITS:Meezan Bank

has a separate Department of Service Quality which ensures that
service quality standards are maintained by the employees of the
bank. SQC visits of branches are made weekly and the branches
are ranked in terms of their services quality standards. Everything
from maintenance of Records to cleanliness of branch has quality
points. Based on the total of those points, there are three ranks
which a branch can be assigned :

(a) RED (Low) (b) BLUE (c) INDIGO (High)

6. SHARI’AH AUDIT:Meezan Bank’s Shari’ah Team conducts
surprise audit of its branches to ascertain whether its staff is
adequately familiar with Islamic banking concepts and are able to
explain those concepts to the customers.

MEEZAN PREMIUM BANKING:

Meezan Premium Banking is a prestigious way of Islamic banking specially
designed to meet the customer’s financial needs.
Premium customers enjoy personalized and free basic banking services,
customary discounts and privileges tailored to their lifestyle at finest retail
outlets, restaurants and hotels across the country.
 45

Meezan Premium Banking offerings are based on three pillars:

1. Understanding customer’s basic banking requirements so that they may
receive an exceptional level of service and attention that is both exclusive
and responsive.
2. Offering customers a suite of world class Shariah-compliant financial
solutions that address all their priorities - from relationship based pricing,
value added products and services, exclusive channels to lifestyle
privileges.

3. Recognizing customer’s relationship with Meezan Bank, and rewarding

it with exclusive and differentiated benefits designed to meet their financial
needs.
MEMBERSHIP CRITERIA
Premium Banking services are offered by the Bank at its sole discretion
to individual customers (including Current and Savings account-holders)
meeting the criteria set for Premium Banking. Individual customers
include both Single and Joint Account-holders.
The criterion for Premium Banking is based on Monthly Average
Balance of all depository accounts, and is as follows:
1. All Checking Accounts: Equivalent to PKR 3 million or more
OR
2. All term Deposit Certificates: Equivalent to PKR 5 million or more
OR
3. Combined All Checking Accounts & Term Deposit Certificates:
Equivalent to PKR

5 million or more.
 46

Eligible customers interested for Premium Banking services are required

to submit "Enrollment Form for Premium Banking" at parent branch
Premium banking services will be discontinued if criteria is not
maintained.
Premium Banking Benefits
The benefits of Premium Banking
come with style. We recognize
the customer’s relationship with
us and give them a banking
solution fitting their requirements.

These benefits are also available

to their joint account holders.
Fee waivers on Basic Banking and ADC services
Fee waivers and / or discounts on our Consumer Banking products
Processing fee is waived on the following Consumer Banking products:
 Easy Home
 Car Ijarah
 Laptop Ease

Note: All other charges will be levied as per the Bank's prevailing Schedule
of Charges
 Higher Cash Withdrawal and POS limits on Meezan Visa Platinum
Debit Card
 Special discounts and privileges at selected retail outlets, restaurants
 47

and hotels
 Free access to International CIP lounges in Karachi, Lahore and
Islamabad airports with Meezan Visa Platinum Debit Card

Premium Banking Services

We value our customer’s time and have devoted ourselves to provide them
with the highest level of service across all our banking channels.

DEDICATED RELATIONSHIP TEAM

A dedicated relationship team is assigned to

the customer for managing their banking
needs and overseeing their financial
relationship with the bank. At any of our
branches across the country, they will be
recognized as a Premium Banking customer
and will experience the same level of
extraordinary attention that they get at a
Premium Banking Center.

Exclusive Banking Channels

We make our premium customer’s banking experience valuable through the
exclusive banking channels available to Premium Banking customers only.
1. PREMIUM PHONE BANKING enables to consult with our
experienced Phone Banking Officers 24 hours, 7 days a week to help
 48

with their banking needs on a toll free number 0800-00625 (outside

Pakistan +92-21 35839041).

1. PREMIUM INTERNET BANKING offers them convenient access to

their bank accounts anytime, anywhere.

1. PREMIUM SMS ALERTS keeps them informed about their banking

transactions on their bank accounts.

2. PREMIUM BANKING CENTERS are equipped with all banking

capabilities that provide them comfort to easily transact their banking
needs.
 49

CHAPTER 4
MEEZAN BANK PRODUCTS

D E P O S IT A C C O U N TS
LOCAL CURRENCY A/CS
RUPEE CURRENT A/C

Meezan Current Account is based on Qard contract where the Bank is

liable to pay your money back on demand. The Bank can use these funds
for investment and other purposes according to Shariah principles.

Meezan Current Account can be opened by Individuals, Sole-

Proprietorships, Partnerships and Limited Companies.

maintained
RUPEE SAVINGS A/C

The Riba-free Rupee Saving Account is a basic banking account for

every customer's need. The account provides expected monthly returns
along with a variety of free packaged benefits.

On agreeing to become a Rupee Saving Account holder, the customer

enters into a relationship based on Mudarabah with Meezan Bank.
Meezan Rupee Saving Account can be opened by Individuals, Sole-
Proprietorships, Partnerships and Limited Companies.

 Minimum investment required is Rs. 100

 50

 Profit will be calculated on daily product basis&paid on monthly

basis.
 No restriction on withdrawals or number of transactions
 Globally accepted Meezan Visa Debit Card.
 Free bank balance certificates
 Access to priority desk
 Issuance of duplicate statement of account

MEEZAN BACHAT A/C (MBA)

Meezan Bachat Account is a unique saving account that provides high

expected monthly returns with the flexibility to withdraw savings if
needed. Meezan Bachat Account offers a higher expected rate of return
with nearly the same convenience and service of a regular savings
account.

Meezan Bachat Account can be opened by salaried or Self-employed,

Housewives and Retired individuals.

On agreeing to become a Meezan Bachat Account holder, the customer

enters into a relationship based on Mudarabah with Meezan Bank
.
-
higher profit
weightage is
Rs.25,000,000/-.

monthly basis.

closing balance of the account exceeds a specified threshold (currently

Rs. 25,000,000/-)

basis.
 51

LABBAIK SAVING ASAAN A/C

Meezan Labbaik Saving Aasaan is an ideal deposit product for an

individual saver. This is a special Mudarabah based Deposit account
(available in six months to twenty years plan) for Umrah & Hajj where
customer will be entitled for profit on the deposited amount, thus
providing them a bigger incentive to save for Umrah/Hajj through
Meezan Labbaik Saving Aasaan.

On agreeing to become a Labbaik Saving Aasaan Account holder, the

customer will enter into the relationship of Mudarabah with the Bank.
Meezan Labbaik Saving Account can be opened by Individuals, Sole-
Proprietorships, Partnerships and Limited Companies.

 Available for individuals, where customers can open a single / joint

account with family members
 Minimum amount to open the account is Rs. 1,000/-
 Labbaik Saving Plan is available for six (06) months to twenty (20)
years
 It will be a Recurring Deposit Account, where customers will deposit
monthly contribution as per the deposit schedule plan
 Labbaik Saving Account is a non-chequing account, where no cheque
book or VISA Debit Card will be issued
 Apart from regular monthly deposit contribution customers can
deposit additional amounts in order to complete the deposit amount
and make the desired journey earlier than initially scheduled
 After completion of the desired deposit amount, customers will have a
right to travel with Meezan Bank or redeem his funds to go with an
alternate company or utilize the funds for alternate purposes
 No pre-mature withdrawal schedule will be applied
 Customers may redeem 50% of the contribution as per defined
procedure, one-time in the entire deposit tenure

MEEZAN BUSINESS PLUS A/C

 52

Meezan Business Plus is a Mudaraba-based account that allows the

customers to conduct their banking transactions while availing a wide
range of free services and therefore provides an ideal blend of
convenience & flexibility that they deserve in Islamic banking.

Meezan Business Plus Account can be opened by Individuals and

businesses including Sole Proprietorships, Partnerships and Limited
Companies.

 Minimum investment required to open an account is Rs. 100/-

 There is no restriction on withdrawals or numbers of transactions
 There is no deduction of service charges if the balance maintained is
low
 You will have instant access to your account both through Internet
banking and through Online banking at all branches of Meezan Bank
across Pakistan
 The following facilities will be provided free of charge* if an average
monthly balance of Rs. 25,000/-is maintained in the account
 (i) Cheque books (ii) Pay Orders (iii)Visa Debit Card (iv)
A/c Statements (v) Online banking(vi) Internet banking (vii) Hold
Mail Facility (viii) SMS Alerts
(ix) Intercity Clearing (x) Pay Order Cancellation

KIDS CLUB A/C

Meezan Kids Club account is designed specifically for children under the
age of 12 years in order to help them teach the value of savings. They can
deposit their pocket money & Eidi. They will also receive exciting prizes
from the bank on special occasions.

 Account with Rs. 500/- only

 Exciting gifts on account opening
 Halal profit every month
 Free personalized 'Kids Club Certificate'&Cheque Book
 SMS Alerts on your transactions
 53

 Free first Visa Debit Card in different colors for boys and girls
 No minimum account balance requirement
 The account is in the child’s name; however they need their
parent’s/guardian’s help for using it.
 After their 12th birthday, they can be a member of the Meezan Teens
Club Account, which will open a whole new world of activities and
fun.
 Free Education Takaful cover for one year on opening the account
with Rs.10,000

TEENS CLUB A/C

With the mission to offer one-stop innovative value-added Shariah
compliant products and services, Meezan Bank is pleased to launch yet
another novel product - Meezan Teens Club Account dedicated to the
teens of the country. The account is based on Mudarabah principles.

Meezan Bank is a keen Socially Responsible Organization and realizing

this responsibility, the Teens Club Account aims to provide a forum to
teens where their maturing minds are groomed in a modern yet Islamic
way. The Teens Club Account provides a blend of fun learning with
special focus on character and value building.

with Rs. 1,000/- only

on your transactions

m account balance requirement

Takaful cover for one year on opening the account
with Rs.10,000/-
 54

KAROBARI MUNAFA A/C:

Karobari Munafa is a high profit savings account specifically tailored for
large Corporate or GoP-controlled entities. It allows customers to earn
higher returns on surplus cash balances, has no preset transaction limits
and comes with a variety of free packaged benefits.

Karobari Munafa Account can be opened by Individuals, Sole-

Proprietorships, Partnerships and Limited Companies.The Karobari
Munafa Account works on the principle of Mudarabah

 Minimum investment required to open an account is Rs. 10,00,000/-

 Profit will be calculated on daily product basis & paid on monthly
basis.
 No restriction on withdrawals or number of transactions
 Dedicated Relationship Manager
MEEZAN ISLAMIC INSTITUTION DEPOSIT A/C (MIIDA):
The Meezan Islamic Institution Deposit Account (MIIDA) is a unique
product, tailored exclusively for Islamic Financial Institutions (IFIs).
With MIIDA, any IFI now has the opportunity to manage excess
liquidity in an immediate and profitable manner by maintaining a
checking account with Meezan Bank.

Meezan Islamic Institution Deposit Account (MIIDA) is for Islamic

Financial Institutions only.
MIIDA works on the principle of Mudarabah.

The features and mechanics of the product are detailed below providing
a ready-made solution ensuring high returns, easy accessibility, total
stability, and absolute Shariah compliance.

 A Checking Account only available for IFIs.

 Deposits invested under a Mudarabah arrangement
 Minimum investment amount- PKR 10,000,000/- or multiples thereof
 55

 Maximum investment amount – PKR 1 billion

 Withdrawals of funds :
 24 hrs. notice for PKR 50 - 200M deposit
 48 hrs. notice for 200M+ deposit
 Profit disbursed on a monthly basis
 Profit calculated on daily product basis

FOREIGN CURRENCY A/CS

DOLLAR SAVING A/C
The Riba-free Dollar Savings Account is a Mudarabah-based savings
account that is an excellent business tool for both individuals and
corporate clients for meeting their business needs and for diversifying
their investment in different foreign currencies to safeguard against
currency fluctuations.

The Meezan Dollar Saving Account can be opened by individuals and

businesses including Sole Proprietorships, Partnerships and Limited
Companies.

 Minimum investment required to open an account is $100

 There is no deduction of service charges if the balance maintained is
low
 Profit will be calculated on daily product basis & paid a on monthly
basis
 Foreign Remittances

EURO SAVINGS A/C

The Riba-free Euro Saving Account is a Mudarabah-based savings
account that you can open and operate using Euros and is therefore an
excellent business tool for individuals and corporate clients both for
meeting their business needs and for diversifying their investment in
different foreign currencies to safeguard against currency fluctuations
 56

Meezan Euro Saving Account can be opened by Individuals, Sole-

Proprietorships, Partnerships and Limited Companies.

 Minimum deposit required to open an account is € 100

 Routine withdrawals up to € 500 per day allowed without prior
intimation (subject to availability)
 Withdrawals of above € 500 needs 1 day prior notice
 No deduction of service charges if the balance maintained is low
 Profit will be calculated on a daily product basis & paid on monthly
basis.
 Foreign Remittances

POUND SAVINS A/C

The Riba-free Pound Saving Account is a Mudarabah-based savings
account that you can open and operate using UK Pounds and is therefore
an excellent business tool for individuals and corporate clients both fo r
meeting their business needs and for diversifying their investment in
different foreign currencies to safeguard against currency fluctuations

Meezan Pound Saving Account can be opened by Individuals, Sole-

Proprietorships, Partnerships and Limited Companies.

 Minimum deposit required to open an account is £ 100

 Routine withdrawals up to £ 500 per day allowed without prior
intimation (subject to availability)
 Withdrawals of above £ 500 needs 1 day prior notice
 No deduction of service charges if the balance maintained is low
 Profit will be calculated on a daily product basis & paid on monthly
basis.
 Foreign Remittances
 57

TERM CERTIFICATES
CERTIFICATE OF ISLAMIC INVESTMENT (COII)
The Certificate of Islamic Investment (COII) is a Mudarabah-based
deposit product through which customers can invest their savings for
periods ranging from 3 months to 5 years and earn Halal profit on a
periodic basis.

The Certificates of Islamic Investment is an ideal investment for

Individuals, Sole Proprietorships, Partnerships and Limited Companies

 Investment can be made for 3 months, 6 months, 1 year, 2 years, 3

years and 5 years
 Profit payment options are monthly, quarterly or at maturity
 Minimum investment required for quarterly and on-maturity payment
is Rs. 50,000/
 Minimum investment required for monthly profit payment is Rs.
200,000/
 Pre-mature withdrawal can be made as per approved schedule
 Enjoy a higher weightage with COII Plus on your term deposit on 3
months to 1 year by investing Rs. 3 million or more.

MEEZAN AMDAN CERTIFICATE (MAC)

Meezan Amdan Certificate is a Mudarabah-based long-term deposit
product that offers a high expected return to investors and is ideal for
those individuals and corporate clients who need a regular stream of
monthly income.

Meezan Amdan Certificates work on the principle of Mudarabah.

The Meezan Amdan Certificate is available for Individuals and
businesses including Sole Proprietorships, Partnerships and Limited
Companies.
 58

 Minimum investment required is Rs. 100,000/

 Minimum investment for widows and senior citizens is Rs. 50,000/-
 Investment can be made for 5 1/2 years and 7 years
 Profit payment is made to your Meezan Bank account on a monthly
basis
 Pre-mature withdrawal can be made as per approved schedule

MONTHLY MUDARABA CERTIFICATE (MMC)

The Riba-Free Monthly Mudarabah Certificate (MMC) is a short-term
deposit product which has been designed to give customers expected
monthly returns.

Monthly Mudarabah Certificates work on the principle of Mudarabah.

The Monthly Mudarabah Certificate is available for Individuals and
businesses including Sole Proprietorships, Partnerships and Limited
Companies.

 Minimum Investment required is Rs. 100,000/-

 Investment period is one month with re-investment option available
on a continuous basis
 Monthly profit payment will be made to your Meezan Bank account
 Pre-mature withdrawal can be made as per approved schedule
 Enjoy a higher weightage with MMC Plus on your monthly
investment by investing Rs. 3 million or more.

DOLLAR MDARABA CERTIFICATE (DMC)

The Dollar Mudarabah Certificate (DMC) is a deposit product through
which you can invest your US Dollars with Meezan Bank for periods
ranging from 3 months to 3 years and earn six-monthly or at maturity
profit payments on your investment.
 59

Dollar Mudarabah Certificates (DMC) work on the principle of

Mudarabah.
The Dollar Mudarabah Certificate is an ideal investment for Individuals,
Sole Proprietorships, Partnerships and Limited Companies.

 Minimum Investment required is USD 10,000/-

 Investment tenures are 3 months, 6 months, 1 year and 3 years
 Profit payment will be made either at maturity or on a six-monthly
basis to your Meezan Bank Dollar Saving Account
 Pre-mature withdrawal options available as per approved Early
Redemption Schedule

CONSMER FINANCING
EASY HOME
Easy Home is a Shariah-compliant Home Finance facility. One that is
comprehensive, affordable, and totally hassle-free. Meezan Bank is
committed to meet our customers’ needs in a truly Shariah-compliant
manner coupled with dedicated service excellence.

Easy Home works on a Diminishing Musharakah basis.

Financing in DHA Creek Vista

Creek Vista is a mega residential project of DHA comprising of high

rise complexes equipped with all modern day facilities. Meezan Bank is
the first Islamic Bank to extend Home Financing for purchase of
apartments in Creek Vista.

Easy Buyer

Features:
 60

 Flexible financing from minimum PKR 500,000/- to PKR 50 million

for Salaried, SEP, NRP & Businessmen customers.
 Easy selection of financing tenure from 3 years to 20 years
 Maximum 25 years tenure for Salaried & SEP customer

Easy Builder

Easy Builder allows customers to get financing for

 Residential construction on applicant’s owned land
 Purchase of land & residential construction
 Enhancement of an already constructed residential bungalow

Features:
 Flexible financing from minimum PKR 500,000/- to PKR 50 million
for Salaried, SEP, NRP & Businessmen customers.
 Easy selection of financing tenure from 2 years (excluding
construction period of max 12 months) to 20 years.
 Maximum 25 years tenure for Salaried & SEP customer

Easy Renovate

Features:
 Flexible financing up to 30% of property value but within the range of
PKR. 300,000/- to PKR. 10 million.
 Easy selection of financing tenure from 2 years up to a maximum of
15 years

Easy Replace

Under this plan Meezan Bank helps customers switch their existing
liability over to the bank and let the customers enjoy the benefits
of Halal and totally flexible financing.
 61

Features:
 Flexible financing from minimum PKR 500,000/- to PKR 50 million
for Salaried, SEP, NRP & Businessmen customers.
 Easy selection of financing tenure from 3 years to 20 years
 Maximum 25 years tenure for Salaried & SEP customer

Bank Investment Ratio (BIR) for Easy Buyer/ Easy Builder/ Easy
Replace

 Up to 75% for Salaried / SEP / NRP.

 Up to 65% for Business persons.
 No restriction on early unit purchase / early termination after 12
months of completion

Payment Plans

Step-up-Model
The Step-up Payment plan is introduced for customers who intend to avail
maximum financing facility with lower installments. The step up model is
based on Shariah-compliant structure of Diminishing Musharkah. In this
model, the bank’s share is divided into Musharkah units and in the initial
half of the facility tenure, the customer purchases one Musharkah unit from
the bank every month and in the latter half of the facility tenure, the
customer purchases two Musharkah units from the bank every month. Thus
the monthly installment during initial years is comparatively lower which is
easily affordable. This model is a Shariah-compliant alternative available to
the customers who wish to avail maximum financing facility from the
Bank.

UMI Model
The client purchases the units every month and will eventually become the
owner of the property. Rental amount is adjusted according to the bank’s
share (units) remaining in the property. In UMI, the Musharkah unit price
remains constant throughout the financing period.
 62

Payment Frequency and Mode

Monthly installments, through Direct Debit of customers account
maintained at any branch of Meezan Bank Ltd.

Profit Calculations

Meezan Bank's Profit margin is correlated to the conventional

mortgage market trends
At Meezan Bank, the profit margin is directly correlated to market trends to
provide a competitive product to our customers. Shariah allows the use of
any conventional market factor as a benchmark to determine the profit rate
of a particular product. The mere fact that the applied profit rate of our
product is based on similar factors used in determining the applied rate of
interest of a mortgage does not render the transaction or the contract invalid
from the Shariah perspective, and neither does it make the transaction an
interest-bearing one. On the other hand, it is the underlying structure of the
product that determines its Shariah compliance.

For Salaried Customers including SEP’s, NRP’s & Merchant Navy

Fixed – 1st Year : K * + 3.00 % p.a

Annual Re-pricing : K ** + 3.00 % p.a.

(Floor 8.00% p.a. and Cap 30% p.a.)

For Businessman Customers

Fixed – 1st Year : K * + 4.00 % p.a

Annual Re-pricing : K ** + 4.00 % p.a.

(Floor 8.00% p.a. and Cap 30% p.a.)

 63

* For first year Fixed Rate, “K” denotes KIBOR (Karachi Inter Bank
Offer Rate), announced on 1st working day of each calendar month.
** For annual revision, “K” denotes 90 days average of 12-month
KIBOR (Karachi Inter Bank Offer Rate), announced for each calendar
quarter by the Bank.

 Additional Unit Purchase

Additional units will be revalued at 3%

 Revision of Profit Rates

Profit rates will be revised annually on Account Anniversary

ELIGIBILITY
The following parameters define the specific requirements that will
constitute an eligible application of Easy Home: Islamic Housing Finance.

Particulars Eligibility
- Pakistani and Non Resident
Citizenship Pakistanis as per policy
Pakistan & other countries (NRP) as
Residence & Work Address
per policy
- Minimum age required for a Primary
Customer is 25 years.
-Co-applicant must be over 21 years
of age.
- Maximum 65 years old at the time
of maturity of facility for Primary
Age Customer.
- Maximum 70 years old at the time
of facility maturity for Co-applicant.
In case of Salaried Person - Applicant
and/or Co-applicant, maturity date of
facility shall not exceed the date of
retirement.
 64

- Primary (or Single) & Co-applicant

allowed.
Customer / Applicant - Co-applicant must be a member of
the immediate family i.e. spouse &
parents only
Salaried - Minimum Gross Income of PKR
40,000 per month.
- 100% Co-applicant income will be
clubbed in case of spouse.
Income Self- - Minimum Gross Income of PKR
Employed /75,000 per
Business month
Person
- Two personal references (one
relative and other office
Personal Reference
colleague/friend) not living with the
customer
Salaried - Permanent job with a minimum 2
years continuous work history in the
same industry / field.
Employment
Self-
Tenure
Employed /
Business - Minimum 3 years in current
Person business / industry.

APPLICATION PROCEDURE

Step 1: Application Form & Initial Payment

 A filled & signed application form is submitted to Meezan Bank.
 The required cheque for Processing Fee & External Agency costs is
submitted.

Step 2: Required Documents

All the required documents, as mentioned below, are attached along with
the Application Form:
 65

Personal Information
 Copy of Applicant's CNIC
 Copy of Co-Applicants CNIC (if applicable)
 2 latest passport-sized colored Photographs of Applicant / Co-
Applicant
 Copy of last paid Utility Bills (Electricity/Gas/Telephone)
 Borrowers Basic Fact Sheet
 Copy of CNICs of legal heirs
 Copy of recent Credit Card Bills and any other credit facilities (if
applicable)
 Copy of professional Degree / Certificate (if applicable)
 Copy of Rent Agreement (if applicable)
 Life Takaful documents (Declaration of Good Health / Health
Questionnaire)

Income Information
For Salaried Individuals
 Employment Certificate including salary, date of joining & present
designation
 Original or Certified salary slip of last three months
 Previous employment proof (if applicable)
 Salary A/c Bank statement - last 6 months

For Businessman / Self Employed / Professional

 3 years proof of business (e.g. Tax Return / Bank Certificate)
 Copy of NTN Certificate & last three years tax returns
 Bank Statement of Business Account - Last 12 Months
 Copy of Partnership deed (In-case of Partnership)
 Professional Association Membership Certificate / Practice License (if
applicable)

Step 3: Address Verification

 66

Meezan Bank verifies residential & office addresses of the customer and
the addresses of references submitted.

Step 4: Income Estimation

For Businessman / Self Employed professionals
Meezan Banks External Consultant contactsthe customer to determine
their monthly income to help them in obtaining the maximum possible
financing from the Bank.

For Salaried Individuals

Meezan Bank verifies the income of the customers with their employer.

Step 5: Legal opinion

Meezan Bank obtains a legal opinion on the property documents
provided by the customer.

Step 6: Property Valuation

Meezan Banks appointed Valuation Agency evaluates the property to
determine its market value

Step 7: Credit Approval & Sanction Letter

After the customer has fulfilled all Meezan Banks credit
requirements, they will be given a conditional sanction letter.

Step 8: Account Opening

After approval of the case, the customer is required to open an account
at Meezan Bank.

Step 9: Signing of House Finance Agreement

After completion of the above steps and approval of the customer’s case,
 67

they are required to come to Meezan Bank for signing of the Islamic
House Finance Agreement and other legal documents.

*In Home Construction / Renovation Cases Original Documents will be

handed over to the bank at this stage

Step 10: Transfer of Property and Disbursement

In Home Buying / Replacement Cases

A Meezan Bank officer & authorized lawyer will accompany the
customer and the seller of the property to the appropriate bank or
registrar’s office for Property transfer. Original Property Documents will
be handed over to the lawyer who, after verification of the documents,
will hand over the pay-order to the banker or seller and will then
complete the legal formalities on Meezan Bank's behalf.

Schedule of Charges

The Easy Home application process is subject to the following fees

Segment Salaried Businessmen

Processing Charges PKR 5,000 PKR 5,000

FED on Processing Charges@
16% PKR 800 PKR 800
Legal Report Charges At Actual At Actual
Property Valuation Charges At Actual At Actual
Income Estimation Charges N/A At Actual

*Documentation charges are exclusive of above-mentioned charges and

will be obtained at the time of signing of Musharakah Agreement
according to the limits of financing.
 68

Charity / Late Payment Charges

In Easy Home, in the event of any delay in monthly payment without a

valid reason, the customer will be required to pay as charity a sum of
Rs.500/- (Rupees Five Hundred Only) and an amount @20% per annum
on such overdue amount remaining unpaid.

Eligibility (For NRP Customers)

Particulars Eligibility (For NRP Customers)

Citizenship Pakistani
Product Category Buyer, Builder, Renovation &
Replacement
Builder / Renovation Cases In such cases, a responsible
person will be appointed by the
NRP customer who will look
after construction on Musharakah
property/land.
Segment Salaried Only
Co-applicant for Income clubbing 100% co-applicant income club
in case in case of spouse
Age (Applicant & Co-applicant
for calculation of MBL financing
amount) 25 to 60 years
Co-applicant Age (without
income clubbing) 25 to 70 years
Income Gross PKR 150,000/- & above
Employment Tenure Two years (minimum) regular
experience in same industry.
Minimum last 1-year existing job
in the same country.
Employment Status Permanent & Contractual
Company Eligibility Multinational Co. & Well
Established Local Corporate
 69

Groups
Financing Tenor 3 to 20 Years
Financing Range PKR 0.5M - PKR 50M

LAPTOP EASE
Meezan Bank provides Shariah Compliant Laptop financing facility for
individuals as well as corporate groups

Special Features

Following are few special features of this affinity program:

 Easy Installment options for financing period for 3 to 24 months.

 1 year warranty for Dell, HP & Apple Products provided by vendor.
 Free Carrying Case for Dell & HP laptops provided by vendor.
 Dedicated Call Center for addressing after-sale issues provided by vendor
 Free Takaful (Islamic Insurance) cover upto 100% incase of damage and
upto 50% incase of theft of laptop
 Complete surety and peace of mind that purchased laptop is a genuine
brand
 Laptop model offerings will vary from time to time in consistence with the
latest & upgraded features and market demand.

Meezan Laptop Ease works on Musawamah basis

 70

ELIGIBLITY
B u s i n e s s & S e l f E m p l o ye d

Citizenship Pakistani, Adult, Permanent resident

Age Minimum 20 years. Maximum 65

years at maturity of the financing

Income (PKR) Rs. 40,000/-

Personal Reference Two personal references (one

relative and other office
colleague/friend) not living with the
customer.

Employment & Business Tenure Minimum 2 years in same business

(Business tenure to be verified via
Bank Certificate, NTN Certificate,
Tax returns, Proprietorship letter,
Registered Partnership deed etc)
SALAR IE D
Citizenship
Pakistani, Adult, Permanent
resident

Age Minimum 20 years. Maximum 60

years at maturity of the financing
 71

(Maturity date of the facility

should not exceed the date of
retirement of the applicant.)

Income (PKR) Rs. 25,000/- (Gross Salary)

Personal Reference Two personal references (one

relative and other office
colleague/friend) not living with
the customer.

 Permanent job with minimum 1

Employment & Business Tenure year continuous working history
in same industry.
 Direct company contract valid
till maturity date of financing
(Total 1 year previous working
experience is mandatory).
 72

MEEZAN ROSHNI
Meezan Bank provides Shariah Compliant Generator financing
facility for individuals as well as corporate groups

ORIENT
Special Features

 Easy Installment options for financing periods ranging from 3 to 24 months

with minimum down payment.
 1 year comprehensive warranty on both petrol and Gas *.
 Free Gas Kit, wheel kit and tool kit.
 All models are equipped with electric starter and battery.
 Free home delivery and 24 hours help line service provided by OES.
 Stable power via AVR and digital display for voltage, frequency and
running hours.

*Subject to warranty terms mentioned on warranty card.

HONDA
Special Features

 Easy Installment plan from 3 to 24 months with minimum down payment.

 1 year comprehensive warranty both electrical and mechanical*
 Service network available in major cities of Pakistan.
 Free home delivery and free tool kit.
 2 free services i) 20 hrs (90 days) ii) 120 hrs (270 days).
 Built in Automation Voltage Regulation (AVR) & Oil Alert.

*Subject to warranty terms mentioned on warranty card.

 73

MEEZAN KAFALAH
Meezan Kafalah isa Shariah-compliant alternative to Bancassurance that
offers a unique combination of saving, investment and protection.

Kafalah plans are available for

- higher education for your child from a renowned university

- your daughter's wedding

- performing Hajj

- having a comfortable retired life with abundant savings

- any other financial objectives you may want to achieve.
•Plans start as low as Rs.2,000/month.
•Plans are available from 3 years to 15 years.
•Flexible payment options: Monthly / Quarterly / Annually.
•Continuous protection through Takaful Company.
•Monthly profit payment reinvested in your Kafalah plan.
•Easy exit option having 100% cash value along with the profit earned.
•No hidden charges on premature encashment.
•Tailor-made options are also available.
•Conveniently track your investment growth through complimentary
internet banking.
 74

Meezan Kafalah works on the underlying contracts of Mudarabah and

Wakalah.

E LIGIB L I T Y
• All individuals in the age bracket of 18-55 years.
• Maximum age till maturity is up to 60 years.
• The initial investment required is Rs. 10,000/- only.
• Minimum investment is Rs. 24,000 per year or Rs. 2,000 per month.
E AR LY R E D E MP TIO N
• 100% cash value from day one alongwith daily profit.
• Flexible exit option.
• Instant availability of funds.
• Zero(0)deduction on premature encashment.

D e a t h B e n e f i t : In case of the customer’s death, a sum of the cash

value (invested amount along with the profit earned) and
theTakaful cover shall be paid.
*The cash value will be paid by Meezan Bank.
*Takaful cover will be paid by Takaful Company.
 75

CHAPTER 5
FINANCIAL ANALYSIS

S WOT ANALYSIS

STRENGTHS
1. Meezan Bank is Pakistan’s largest Islamic bank and a major
market share holder of Islamic banking.
2. Strong financial growth annually since its inception.
3. World renowned Shari’ah scholars in Meezan bank’s Shari’ah
supervisory board.
WEAKNESSES
1. Limited marketing & advertising.
2. Limited opportunities for investment of surplus.
3. Limited knowledge of Islamic finance among masses.
4. Excess Liquidity
OPPORTUNITIES
1. Increasing demand for Shari’ah compliant products.
2. Growth of Islamic banking locally & internationally.
3. Development of more innovative Shari’ah compliant products.
THREATS
1. Growing competition in Islamic banking sector.
 76

2. Conventional banks are also entering Islamic banking sector.

3. Misconceptions among masses about Islamic Banking

RATIO ANALYSIS

All figures in 000’s

9 MONTHS 9 MONTHS
GROWTH
TO SEPT 13 TO SEP 14
RETURN ON EQUITY= (NET PROFIT AFTER TAX / STOCKHOLDER’S
EQUITY) X 100

(2,877,263/ 17,908,150) x 100= 16.07%

(3,576,292/ 19,478,966) x 100= 18.36% 2.29%
RETURN ON ASSETS= (NET PROFIT AFTER TAX / TOTAL ASSETS) X 100
(2,877,263/ 329,724,631) x 100= 0.87%
(3,576,292/ 377,377,378) x100= 0.95%
0.08%
NET SPREAD MARGIN= (NET SPREAD AFTER PROVISION/ TOTAL
ASSETS) X 100
(8,047,941/ 329,724,631) x100= 2.44%
 77

(9,584,833/ 377,377,378) x100= 2.54%

0.10%
This ratio shows gross earnings on financing less the return paid to the
deposit holders as a % of total assets.
NET OTHER INCOME MARGIN= (TOTAL OTHER INCOME/TOTAL ASSETS)
X 100

(2,437,553/ 329,724,631) x100= 0.74%

(3,399,854/ 377,377,378) x100= 0.90%
0.16%
Return earned by the bank other than its core operations.
EPS= (PROFIT AFTER TAX/ WEIGHTED AVERAGE ORDINARY SHARE IN
ISSUE)

(2,877,263/ 1,002,530.67) 2.87

(3,576,292/ 1,001,762.47) 3.57 0.7

NET PROFIT MARGIN= (PROFIT BEFORE TAX/ NET SPREAD EARNED) X

100

(4,320,106/ 8,039,905) x 100 53.73%

(5,428,155/ 9,557,875) x 100 56.79% 3.06%
FINANCING TO DEPOSIT RATIO= ISLAMIC FINANCING / DEPOSITS &
OTHER A/CS
(127,622,868/ 289,810,519) 44.04%
(138,322,402/ 329,933,728) 41.92%
-2.12%
 78

THE country`s premier Islamic bank with over Rs377bn in assets had a
fairly stable three quarters of the year.
Deposit growth continued to remain strong, but a lack of new Shahriah
compliant investment opportunities meant that the bank was not able to
fully utilise its surplus funds in profitable avenues.
Financing to Deposit Ratio represents the amount extended as a loan by
a bank to its clients compared to the deposits that it receives from its
deposit holders. It has decreased by 2.12% indicating bank should focus
on its core operations.
Non-core operations of the bank have increased the Net Other Income
margin by 0.16%.
Meezan Bank has an after-tax profit of Rs3.58bn for the period ended
Sept 30, 2014, translating into earnings per-share (EPS) of Rs 3.57. The
earnings were up a healthy 24.3% from Rs2.88bn (EPS: Rs2.87) in the
same period last year. Its Net Profit margin has also improved by 3.06%.
Total deposits grew by 13.84% in the 9 month period of 2014..
Of the planned Branch network expansion of 67 branches, up till now
only 34 branches have been established. Several are work-in-progress.
MBL`s asset management arm Al-Meezan Investment Management Ltd
complained about the lack of new Shahriah-compliant investment
opportunities in its financial report for the quarter ending March 2014.
Since the end of the first half of 2013, the market has continued to face
excess liquidity pressure, as banking deposits have been on a consistent
rise, without any increase in deployment avenues; instead, the avenues
have been decreasing.

As a result, the bank`s net investments dropped 27.8% to Rs109.46bn.

 79

Its Return on Assets have risen by only 0.08% and Return on equity by
2.29%.
The bank continued to focus on the non-core side of the business,
reflected in the significant 48pc growth in non-core income to Rs2.31bn.
Trade finance seems to be a major growth booster. Meezan bank has
also ventured into shipbreaking finance in 2012.
Meezan Bank has acquired the Operations of HSBC Pakistan on 18
October 2014 including their 10 branches, with assets totaling about
$455m after final approval from the SBP and Competition Commission
Pakistan. This will have an impact on end of the year ratios of the bank.
The move comes as competition in the Shahriah-compliant financial
industry heats up, with one conventional bank establishing its own
Islamic banking subsidiary, a few others aggressively expanding their
existing Islamic banking branch networks, and one small bank
converting itself into full Islamic mode.
At the KSE, Meezan`s stock of par value Rs10 is about 50.70. •
 80

CONCLUSION

Knowledge based learning in a classroom environment by itself is not a

success factor. In addition to knowledge acquisition, one must also
acquire professional skills to accompany it and succeed in their field.
These skills can only be acquired in a Skill based learning environment
(i.e. a workplace).
The purpose of internships is tointroduce the students to potential future
work environments and enable themto decide whether these meet their
career wishes and interests. It also helps acquire important
supplementary skills during an internship and make contact with
potential future employers.
I had the opportunity to work with the Premier Islamic bank of the
country and gain valuable experience and the skills to go with it.
Based on my experience and observation in the bank, some suggestions
are as following:
 In addition to marketing for increasing its customer base, the bank
should also focus its marketing on combating the limited
understanding & misconceptions among the masses about Islamic
banking.
 Meezan bank should also focus on developing strategies to
effectively compete with its competitors as even the conventional
banks are expanding into the Islamic banking sector.
 Meezan Bank should also focus on developing an effective
banking system for intercity clearance to reduce clearance time and
thus ensuring customer satisfaction.
 81

 Bank should employ more people on permanent basis to provide

job security and give incentives for growth of employee loyalty.
 82

REFERENCES & APPENDICES

REFERENCES
1. http://www.islamicfinancereview.co/driving-islamic-
banking-forward-in-pakistan
2. http://www.meezanbank.com
3. http://www.marketwatch.com
4. http://www.google.com
5. http://www.sbp.org.pk